Canadian banks are facing significant compliance costs due to FATCA

It is estimated that the five largest banks in Canada have already spent about C $ 750 million (or US $ 693.5 million). This amount does not include the ongoing costs of compliance -only expenses related to the initial launch for FATCA reporting. The cost of FATCA FATCA took effect on 1 July 2014 and ...

The Vatican Bank, Christmas Cheer, And FATCA

As seen at http://www.forbes.com/sites/taxanalysts/2014/12/24/the-vatican-bank-christmas-cheer-and-fatca/ For centuries the inner workings of the Vatican Bank have been cloaked in secrecy. That was before Pope Francis, who has pledged to restore public confidence in the administration of the Roman Catholic Church. This week we learned the United States and the Holy See have brokered a FATCA agreement for the ...

Form 8938 not required for those non-residents by virtue of a treaty positions

As a way of background, until now, non-residents who didn’t meet the substantial presence test, were exempted individuals (form 8843) or used a closer connection exemption (form 8840) didn’t have to file form 8938 (the FATCA version of the foreign asset reporting, often seen as duplicative version of the FBAR’s Fincen 114). Those who were non-residents by ...

FATCA explained

The Foreign Account Tax Compliance Act (FATCA) is designed to fight against tax evasion by US persons holding investments in offshore accounts. There are two aspects to the FATCA: 1. Foreign financial assets Some US taxpayers who hold financial assets specified outside the United States must declare these assets to the IRS.   2. Statement ...

IRS Customs Hold

I’ve seen much talk in the community of American abroad about the ability to of the IRS: To prevent the issuance of a passport to delinquent taxpayers (currently not true, but when applying for a passport, the Department of State will inform the IRS of the address you provided). Interestingly enough, the Department of State ...

GATCA is coming to town

GATCA is coming to town
As many of you know, the United States has implemented FATCA (Foreign Account Tax Compliance Act), requiring financial institutions around the world to report the names of their depositors who are US persons (hence potentially liable to pay US tax) – or else face a 30% withholding on their US sourced income. There have been ...

200,000 Saudi US citizens liable to pay US taxes

200,000 Saudi US citizens liable to pay US taxes
As seen on Arab News More than 200,000 Saudi citizens with dual US citizenship are liable to pay taxes under US taxation laws, according to academics at King Abdulaziz University (KAU) in Jeddah. Such laws have prompted scores of people with dual nationality around the globe to give up their US citizenship. In fact, relinquishing ...

More and more Americans give up their citizenship, 2014 is on track to be a record year

More and more Americans give up their citizenship, 2014 is on track to be a record year
  A significant number of people continue to surrendered their US citizenship or terminate their “long-term US residence” (for green card holders). There are 776 names on the list that the Treasury Department released Friday for the third quarter of 2014. That’s the third highest quarterly figure ever. The total number of ascetics published to ...

Local Client Base (under FATCA) Credit Unions in Canada – an update 1

By way of background, as per the Canadian IGA, credit unions can apply to be classified as a “local client base” financial institution. In this case, the credit union would be FATCA compliant by reporting to the IRS only the names of clients who are US residents – the names of clients who are US ...

Former IRS Head Miller Unsure if FATCA’s Benefits Outweigh Costs

Former acting IRS Commissioner Steven Miller on October 6 said that while he hopes the Foreign Account Tax Compliance Act leads to less offshore tax evasion, he’s not sure if the benefits of the law will outweigh its costs. “I can’t even say with conviction that I’m sure, looking strictly on a cost-benefit basis, that ...